FOREX TERMS

Some terms Forex important and absolutely must be understood.

The first is commonly called "PIP" Pip is a unit commonly used in naming the value of an exchange or so-called also "Points". Examples: USD / CHF 1.4235 last week and today's value rose to 1.4245 it means that this pair has increased by 10 pips Well, understand right?

Another thing we need to know is that his name "LEVERAGE". It's more or less synonymous with "Margin Deposits" in stock., It simply is that if we invest Rp 5 million and when this unit is charged at 1:100 leverage means that we are given rights by the broker to buy 100 x greater than the funds we have. Means with the money amounting to Rp 5 million, we provided funds to purchase foreign currencies amounting to Rp.500 million . Now this is called margin collateral or leverage. Each broker has its own leveragenya - own. In this case, big leverage means possible profit / loss becomes greater. Vice versa, then the leverage that a small amount of loss that may occur becomes smaller with the consequence also becomes smaller gains in value.

I myself prefer a little leverage, Because then the risk of loss is Smaller. If I believe a transaction will of profitable, then I can raise the amount that will be my Lot traded.

Then next is the "CONTRACT SIZE" This is a multiplier factor in calculating the amount of profit and loss. Its value is fixed and set by the government that is 10,000 (ten thousand).

The next thing is the "LOT" Lot is a unit of the contract on every transaction. So when I entered into the transaction, such as purchasing (buy) USD against the CHF, the value of the units in the lot. Again, each broker has their own rules in determining the lot, depending on the pip and levererage them. In AsiaFXOnline, one lot transaction value was Rp 1 million.

FOREX TRADING

Actually the existence of Forex Trading has long been available since the discovery of techniques to convert a country's currency into another country's currency. However, the new institutionally there after an arbitration body set up futures contracts (futures). An example is the IMM (International Money Market, founded in 1972) which is a division of the CME (Chicago Mercantile Exchange-specific product handling perishable commodities). Another example is the LIFFE (London International Financial Futures Exchange), TIFFE (Tokyo International Financial Futures Exchange) and so on.

LITTLE ABOUT FOREX

What is Forex?

Forex stands for Foreign Exchange, or the exchange of the value of different currencies, forex activity unwittingly or consciously, often carried out by all people in the world, if you travel abroad you must exchange your currency with the currency of your destination country. Or another example of a result of export-import activities, the needs of the market and banking institutions, must conduct the currency exchange!

If we trade by exploiting the difference between purchase price and the exchange price is fluctuating every minute,usually referred to by traders who typically perform these Forex Trading through trading house / brokers! Can an online Internet or via phone, or by manually though!

What is the difference Forex Market Forex Markets Traditional and Modern / Online?

For Traditional Forex Market level of money that is used is 1:1, or a means for trading worth $ 100 you need the money $ 100, or the means to perform a traditional market can be said to have substantial capital, generally done offline traditional trade in the FOREX market. Meanwhile, in trading Forex Market Modern use levels and margins, trade was using online media. What is the level and margin? Level here in modern FOREX market like the example is 1:100, or the means to trade $ 100 of capital should be employed only 1:100 its course, or $ 1, $ 1 it was also mentioned by a margin (or also known as a deposit for the purchase quantity $ 100 .)